All Forum Posts by: Phil Avery

I might be interested.  But you'll need to send me the address

@Phil Avery..as @Jay Thomas mentioned - the difficulty of this is finding a lender who understands and is familiar not only with an IUL, but with utilizing cash-value life insurance policies in a strategy at all.   I understand what you're trying to do as personally I don't have an IUL, but I have a certain type of policy that I draw funds from, but I funded it myself.  I also used to sell these policies, so I get it.  That's likely what you're going to have to do - get yourself into a financial position to fund the policy and then draw against it/use it how you want, whether that's for RE projects, hard money lending, etc. If your credit is good and financials look solid, you might be able to get lines or credit or something to fund the policy. Just my $0.02

Most lenders that I have seen are at a minimum of 12% with 3-5 points nowadays. You may need to shift your expectations as to your cost of capital.

Your creative investment strategy has risks like interest-only loans in a declining market and complex IUL policies. Challenges include finding a lender familiar with IUL, meeting credit score requirements, affording fluctuating payments, and planning principal repayment. Seek advice, start small, and be patient for gradual real estate wealth.

@Troy Baack,

@Ryan Bunting and @Lane Kawaoka offer some good answers to your question. Let me chime in by adding a few more pros and cons.

In terms of the pros, turnkey providers are a good option for out-of-state (and other long-distance) investors who want to own rentals without the headaches of being a landlord. If time and capacity are your bottleneck, turnkey investing could work for you.

The biggest downside, however, is the added costs. Turnkey providers charge a percentage of gross rents and may price their rent-ready inventory at or above market value, so turnkey solutions aren’t for investors who want to buy at a discount to market and/or DIY-ers who want to rehab distressed deals themselves.

I've been pouring through many of those links, watching Zach's videos on youtube, and had an initial consultation with RTR. I have other turnkey rentals and have not had the best experience (in Memphis with Mid South Home Buyers/Mid South Best Rentals). 
Based on the issues I've had, it sounds like RTR handles things quite well. I know you asked for real world experience, just thought I'd share what I do know. I'm looking to move forward with RTR.

Much appreciated. Thanks for chiming in. Let us know how it goes!

I do think people get too caught up in the property type and area as opposed to the math that is involved. You're right, it's gotten a lot harder in the last 18 months. Not only did interest rates make the P&I payments on a property much more expensive vs rental growth, but taxes and insurance have risen as well making a lot of properties not cash flow. Many of the investors we work with have started putting a lot more down on the properties to keep payments lower, thereby making the properties cash flow. Other's are buying properties that needs some TLC that they feel they can get at a discount to fix and rent. In your case, it doesn't sound like that's going to work for you. Keep in mind that as you sift through the haystack looking for the needle, so is 90% of the people on Bigger Pockets and everyone on every RE Facebook Group. It is hard, but every market will have their bad and good deals.